Latest edition of EY Belgium’s customs and excise update

Key Takeaways:

1. Last change to register for our annual Global Trade Update seminar on 20 March at our EY offices in Diegem.
2. The EU has imposed anti-dumping duties on lysine, flat-rolled steel, multilayered wood flooring and decor paper from China.
3. President Trump has announced new tariffs on imports from Canada, Mexico, and China, prompting retaliatory actions from these countries.
4. The EU and Mexico have modernized their Global Agreement, eliminating tariffs on EU agri-food exports.
5. New safety and security requirements for EU imports to the UK as from 31 January 2025.
6. The EU has published its 16th sanctions package against Russia.
7. The UK has announced its largest sanctions package against Russia since 2022.
8. The EU will remove Kenya as a GSP beneficiary in 2027 due to its Economic Partnership Agreement with the EU.
9. The EU and India are pushing to finalize a free trade agreement by the end of 2025.
    

Last chance to register for the annual Global Trade Update seminar on 20 March at our EY offices in Diegem

Is your company prepared to address the challenges posed by trade wars? We are thrilled to invite you to our Global Trade Update Seminar, taking place from 9:30 AM to 5:00 PM on Thursday, March 20, 2025, at EY Diegem – The Wings. You can register here.

In the morning session, we will host a multidisciplinary discussion on recent geopolitical developments, with a particular focus on the tariff measures initiated by President Trump and the subsequent retaliatory actions from various countries. Join our experts in global trade, transfer pricing, and supply chain management as they share vital insights on current and planned tariff measures, along with short- and medium-term strategies to mitigate their impact on your operations.

After lunch, we will continue with our annual Global Trade Update, offering a comprehensive overview of significant developments in customs, global trade, and trade compliance. Our breakout sessions will provide an in-depth exploration of key topics, including the trade function, sustainability initiatives, and trade automation

Don’t miss this opportunity to equip your business with the knowledge and strategies needed to thrive in today’s complex trade landscape!
 

Recent developments in the US Trade war with the EU, Canada, Mexico, and China

On 1 February 2025, President Trump announced a 25% additional tariff on all goods from Canada and Mexico, citing a national emergency related to fentanyl and immigration. Following this announcement, Canada responded by imposing a 25% tariff on $30 billion worth of US goods. Mexico condemned the allegations linking its government to organized crime.

After discussions, Trump initially suspended the tariffs on Canada and Mexico for 30 days, leading Canada to halt its retaliatory measures. However, on 3 March 2025, he reinstated the tariffs, stating that Canada and Mexico had not sufficiently addressed cartel activities. On 6 March 2025, he reversed his decision to impose additional tariffs on these countries, indicating that an amendment was needed to minimize disruption to the US automotive industry. As of that date, no additional tariffs will be imposed on goods from Canada and Mexico that meet US-Mexico-Canada Agreement (USMCA) rules of origin. Goods not meeting these criteria will face a 25% tariff, except for potash and Canadian energy products, which will be subject to a 10% duty.

In addition to the tariffs on Canada and Mexico, President Trump announced a 10% tariff on goods from China on 1 February 2025. This tariff was later increased to 20% on 3 March 2025 through a new Executive Order. Furthermore, on 10 February 2025, Trump issued an executive order imposing a 25% tariff on all steel and aluminum imports into the United States, effective 12 March 2025. In response to the tariffs, China retaliated with tariffs on coal, natural gas, and various goods, including crude oil and vehicles.

On 12 March 2025, President Trump directed his Secretary of Commerce to impose a 50% additional tariff on all steel and aluminum imports from Canada, accompanied by threats to significantly raise tariffs on Canadian cars. In response, Ontario temporarily paused a $10/MWh surcharge on electricity exports to the US shortly thereafter, Trump backed down on the 50% tariff, highlighting a rapid escalation and de-escalation of tensions.

The European Union strongly opposed the US measures targeting steel and aluminum imports, responding in two ways. First, the EU will end the suspension of previously adopted additional tariffs on imports of certain US products, effective 1 April 2025. Second, the European Commission published a list of products that could be subject to new trade measures. EU Trade will consult stakeholders before preparing a new draft implementing regulation, which is expected to come into effect by mid-April, after the Comitology process. The EU's countermeasures could target up to €26 billion worth of US goods.

Additionally, the European Commission has launched a consultation regarding the recent US tariffs on steel and aluminum, inviting feedback from stakeholders affected by these measures and potential EU responses. The consultation will remain open until 26 March 2025, and interested parties can submit their views through a questionnaire available in all official EU languages.

President Trump later threatened to escalate the trade war further by imposing additional tariffs on European Union goods if the EU proceeds with its planned counter-tariffs on US products next month. As the 25% duties on US steel and aluminum imports took effect, Canada announced retaliatory tariffs totaling C$29.8 billion on US goods, including steel, aluminum, computers, and sports equipment. Canada's Finance Minister, Dominic LeBlanc, emphasized that Canada would not stand by while its steel and aluminum industries were targeted.
 

EU adopted 16th sanctions package against Russia

The 16^th sanctions package aimed at Russia’s war of aggression has been published on 24 February 2025. The package focuses on key sectors of the Russian economy, including energy, trade, transport, infrastructure, and financial services, while also introducing further measures to prevent circumvention. In addition to new listings, the measures include, amongst others, a ban on the temporary storage or the placement under free zone procedures of Russian crude oil or petroleum products in EU ports. The sanction package also prohibits EU imports of primary aluminum from Russia and introduces additional dual-use restrictions.

Furthermore, the EU also reinforced its sanctions regimes related to Crimea and Sevastopol, as well as the non-government-controlled regions of Donetsk, Kherson, Luhansk, and Zaporizhzhia oblasts.
 

UK adopted largest sanctions package against Russia since 2022

The British government has announced a new sanctions package, the largest since Russia's invasion of Ukraine in 2022, with over 100 new sanctions targeting those supporting the invasion. This package focuses on Russian military supply chains, the revenues funding Putin's war, and kleptocrats profiting for the Kremlin.

The sanctions include measures against producers of crucial military technology and North Korean officials involved in deploying troops to Russia. And for the first time, foreign financial institutions are also being sanctioned, specifically the Kyrgyzstan-based OJSC Keremet Bank. Additionally, the new sanctions include 40 more 'shadow fleet' ships carrying Russian oil, bringing the total to 133. Furthermore, 14 new kleptocrats are being sanctioned.
 

EU Commission implements new trade measures to combat unfair practices

The EU Commission has recently introduced several measures to regulate trade and protect the EU industry from unfair practices:

• A provisional anti-dumping duty has been imposed on imports of lysine originating in China, with duty rates ranging from 58.3% to 84.8%. This action follows an investigation initiated on 23 May 2024, after a complaint was lodged by Metex Noovistago on 8 April 2024, which provided sufficient evidence of dumping and resulting material injury. The product under investigation is lysine, currently classified under CN codes ex 2309 90 31 and ex 2309 90 96 for Lysine sulphate, and under CN code 2922 41 00 for lysine hydrochloride and aqueous solutions of lysine (TARIC codes 2309 90 31 41, 2309 90 31 49, 2309 90 96 41, 2309 90 96 49).
  
  
• Additionally, the Commission has imposed provisional anti-dumping duties on imports of flat-rolled products of iron or non-alloy steel plated or coated with tin originating in China. The products under scrutiny  are currently classified under CN codes 7210 11 00 , 7210 12 , ex 7210 70 , 7210 90 40 , ex 7210 90 80 , 7212 10 , and ex 7212 40 (TARIC codes 7210 70 10 15, 7210 70 80 20, 7210 70 80 92, 7210 90 80 20, 7212 40 20 10, 7212 40 80 12, 7212 40 80 30, 7212 40 80 80, and 7212 40 80 85), with duty rates ranging from 14.1% to 62.6%. This measure follows an investigation initiated on 16 May 2024, in response to a complaint from EUROFER on 2 April 2024, which highlighted significant evidence of dumping and material injury to the Union industry. 
  
  
• Furthermore, the Commission has acted against imports of multilayered wood flooring (MWF) originating in China, imposing provisional anti-dumping duties ranging from 42.3% to 49.2%. This measure was initiated on 16 May 2024, following a complaint from the European Parquet Federation on 4 April 2024, which indicated substantial evidence of dumping and material injury. The product is classified under CN code 4418 75 00.
  
  
• Lastly, on 14 February 2025, the European Commission announced a provisional anti-dumping duty on imports of decor paper originating in China. This measure follows an anti-dumping investigation initiated in June 2024, in response to a complaint filed by four Union producers of decor paper. The provisional anti-dumping duty applies to imports classified under CN codes ex 4802 54 00, ex 4802 55, ex 4805 91 00, and ex 4811 60 00, with specific characteristics. Furthermore, the exact anti-dumping duty ranges between 31,0% and 34,9%, depending on the manufacturer.
   

EU and Mexico finalize modernised Global Agreement

The EU and Mexico have successfully concluded negotiations to modernize their Global Agreement, strengthening political and economic ties between the two parties. This updated agreement aims to enhance political dialogue and cooperation while creating new economic opportunities. It emphasizes shared values, sustainable development, anti-corruption measures, human rights, multilateralism, and international peace.

Key highlights of the agreement include the elimination of high tariffs on EU agri-food exports to Mexico, which will open significant business opportunities in sectors such as financial services, transport, e-commerce, and telecommunications. Additionally, the agreement aims to strengthen supply chains for critical raw materials, thereby enhancing the competitiveness of European industries. It also promotes digital trade and sustainability initiatives. Ursula von der Leyen, President of the European Commission, underscored the potential benefits of the agreement for both economies and its alignment with climate action goals.

The trade component is expected to significantly boost EU-Mexico trade, which recently reached €82 billion in goods and €22 billion in services.

Furthermore, the agreement includes a dedicated chapter on trade and sustainable development, establishing legally binding commitments regarding labor rights, environmental protection, and responsible business practices. With negotiations now complete, both parties will proceed with the ratification process.
 

Removal of Kenya as GSP beneficiary in 2027

Since July 2024, there is an Economic Partnership Agreement in place between the EU and Kenya. However, the Generalised Scheme of Preferences (GSP) specifies that a country that benefits from a preferential market access arrangement that offers the same or better tariff preferences as the GSP, cannot simultaneously benefit from the GSP. Consequently, Kenya should be removed in the list of beneficiary countries under the GSP, as outlined in Annex II of (EU) No 978/2012. To ensure legal clarity and minimize administrative burdens, the removal will take effect on 1 January 2027.
 

EU and India push to seal free trade agreement by end of 2025

The EU and India aim to finalize a free trade agreement by the end of 2025, which would result in the largest deal of its kind. The ambitious goal is a direct result of the current geopolitical tensions, particularly following the announcement of the White House to impose new tariffs of 25% on all EU imports. As the negotiation rounds continue, Von Der Leyen and Modi agreed to accelerate the conclusion of an FTA between India and the 27-nation bloc. Both sides highlighted the necessity for decisive action and aim to reach a mutually beneficial agreement.

The US tariff threats not only lead to accelerations in the EU-India FTA negotiations, but also in other ongoing FTA talks. Specifically, the EU is putting significant efforts towards trade agreements with Mexico, Malaysia, and the Mercosur block which is currently pending ratification.
 

Safety and security requirements for EU exports to the United Kingdom

As Great Britain (England, Scotland, and Wales) is no longer part of the EU's safety and security zone, the UK government has implemented new safety and security requirements for imports from the EU. Effective from 31 January 2025, a safety and security declaration, also known as ‘entry summary declarations’ or ‘ENS’, will be mandatory for all imports from the EU to the United Kingdom. From this date, the number of required fields for the ENS will be streamlined to 20 mandatory fields, along with 8 conditional fields that need to be completed only under specific circumstances. There will also be 9 optional fields that exporters can choose to complete.

This declaration must be submitted online through the Safety and Security Great Britain (S&S GB) system, with submission deadlines ranging from 1 to 24 hours prior to export, depending on the mode of transport. Exporters can also delegate this responsibility to a third party, such as a customs agent.

To ensure compliance, exporters should verify that their carriers have all necessary shipment information, access to the S&S GB system with a valid UK EORI number, and a clear understanding of the new safety and security obligations. By taking these proactive measures, exporters can help avoid potential delays in the export process.
 

Action points:

1. Join us for our annual Global Trade Update Seminar at our offices in Diegem.
2. Review and adjust pricing strategies for imports affected by the new anti-dumping duties.
3. Explore new trade opportunities with Mexico following the updated Global Agreement.
4. Ensure compliance with the new safety and security declaration requirements for exports to the UK.
5. Stay informed about the implications of the latest EU sanctions package and the UK's largest sanctions package against Russia.
6. Prepare for the removal of Kenya as a GSP beneficiary in 2027 and assess its impact on your trade strategies.
7. Monitor the progress of the EU-India free trade agreement negotiations and identify potential opportunities.